About the Industry
Supported by FCSA, service provider companies put professional freelancers’ best interests first.
Professional freelancers have the option of operating as a limited company or signing up with an umbrella company. FCSA members provide services to freelance workers whichever option they decide to take, depending on which suits them best. We are committed to ensuring each freelance worker finds the best solution to suit their personal needs. Our services are tailored to the client’s needs, not a one-size-fits all.
Umbrella companies operate as a third party, managing the contract between the freelancer and the employing company. This includes carrying out administration, invoicing, payroll and sorting out expenses, tax and National Insurance contributions; taking a huge amount of work and stress off the freelancer’s shoulders, as well as allowing them to benefit financially from legitimate tax dispensations for their business expenses. The freelancer is employed by the umbrella company and so still has employment rights, such as holiday pay, sick pay and other statutory entitlements. There are 1.3 million freelance workers in the sector and 100,000 are employed by umbrella companies.
Freelance workers can also opt to establish themselves as a private limited company. FCSA members provide cutting edge services to these individuals. Our members employ leading technologies to provide the framework necessary to assist freelance workers to manage their tax contributions and ensure they are up to date and compliant with all HMRC regulations if they opt to work under this model.
The professional freelance workforce has tremendous value to UK plc but, as a young industry, it isn’t always considered or catered for by Government legislation. However, the rights and needs of this valuable workforce need to be properly supported and defended for the good of the UK economy, and that’s exactly what FCSA has been created to do.
For more information and definitions of the key phrases relating to the professional freelance industry, please see the glossary page of this website.